If you buy at aution you need cash or a line of credit. Typically you need a certified check for 10% of bid and balance in 10 days. Issues with fha financing in this situation: timing to get financing, appraisal being completed (need access) and also if can get appraisal completed who completes work and gets access to insure work was completed.
FHA financing is not the answer. You really need the funds already lined up for buying at foreclosure sale. You also need to understand other risks associated with buying a foreclosure sale. There are tremendous rewards but also tremendous risks. Make sure you understand the risks before you step into this process!
First Weber Group
Certified Distressed Property Expert